Denmark to Start Green Power Bourse

March 14, 2000—Reuters reports that a renewable energy exchange will be established by the Danish Energy Agency on January 1, 2002. Designed to replace current government energy subsidies, the exchange will trade in renewable energy certificates.

The Energy Agency plans to suggest an opening price range of 0.1 to 0.27 Danish crowns per kilowatt-hour and regulate the start-up phase of the exchange. Bourse personnel will measure the total amount electric power produced by renewable sources and then write certificates for the number of kilowatt-hours available. Once a stable spot price is reached, a futures market for the certificates could be established. The government plans to end its involvement after the start-up phase is complete.

By 2003, Danish law requires that 20% of the country’s power must be from renewables. Currently, Denmark receives 12%-13% of its power from renewable sources.